Out Fox The $treet

The Opportunistic Levered (Arbitrage on Covestor.com) model had another rough month. The model was again hit by fraud concerns among Chinese companies and emerging markets stocks fell due to concerns over inflation pulling down growth. Over the 29 months of tracking this model, it has had numerous months of 10% plus swings. Unfortunately some cases were to the downside. In those cases the stock holdings just got more attractive in the process. Even with China fraud scares, the three stocks owned in this model still appear to be worth more than our original purchase prices not to mention multiples of that. The size of declines in some of the stocks in this model caught us off guard. It didn't surprise us that June was weak, but the level of weakness in several sectors such as industrials and emerging markets such as China caught us off guard. Bottom Performers The bottom performers were again lead by the China stocks in the model. ChinaCache International (CCIH) and Lihua Int...

Last Thursday night, Rigel Pharma (RIGL) released disappointing results on its TASKi3 Phase 2b study on Rheumatoid Arthritis (RA). The results showed that the placebo worked basically as well as the R788 pill. Now here is where you need to understand the stock and what was being tested or otherwise you'll be forced into a trading decision by the market and not knowledge. First, this test was only to determine whether the R788 drug worked on RA patients that failed to respond to at least one biologic treatment. Therefore, this result was much less material to the company then the TASKi2 results on July 9th that showed the drug was as effective or more so then existing medicines that typically require shots. "Our objective with R788 in RA is to position the product after methotrexate and before biological therapies are used. We have shown excellent results in that patient population in our earlier TASKi1 and TASKi2 studies, and we believe that patient population represents the...

This morning Rigel Pharma ( RIGL ) reported results from its Phase IIB study on once daily oral medicine for Rheumatoid Arthritis ( RA ). The results showed that R788 was helpful for most patients with a minor side effect on some patients of higher blood pressure. RIGL remains a favorite high risk biotech play for Stone Fox. The analysts continue with the positive comments and targets in the $30s. We'll likely stay on board for at least the mid $20s. The stock was trading in the $13s after this news so thats a significant gain from here. RIGL theflyonthewall.com: Rigel Pharma's R788 will be partnered in next few months, say Rodman & Renshaw Following positive R788 positive Ph IIb TASKi2 clinical trial results, Rodman & Renshaw said the drug will be partnered in the next few months. Shares are Outperform rated with a $33 price target. 08:13 EDT RIGL theflyonthewall.com: Rigel Pharma positive data could lead to lucrative deal, says Thomas Weisel Thomas Weisel believes...

Rigel Pharma (RIGL) has been a investment for the Growth Portfolio for several months now. It's started to get some interest not that it's Arthritis drug is nearing the end of Phase II trials. This drug has blockbuster potential so it's amazing how cheap the stock got back earlier this year. Its also just about unheard of to see a price target suggesting a 230% gain and the stock only jumps 5%. The following information about the upgrade from Rodman & Renshaw was posted here . Rodman & Renshaw analyst Simos Simeonidis gave the stock an "Outperform" rating and expects shares to reach $33 over the next 12 months as the drug candidate R788 advances through development. It is currently in midstage clinical trials, with study data expected in July. The drug candidate has the potential to "become a significant player" in the rheumatoid arthritis market, he said, in a note to investors, citing its effectiveness so far in trials and oral administration. ...

RIGL stock is down 8% now after a big downgrade from RBC. Still haven't found the info, but its amazing that after all this time and access to information that analysts can have such a huge impact on a stock. So far RIGL is holding the support that has existed in January and it's bounced up since the opening. Positive signs that buyers were happy with this price. Might turn out to be the typical contraian play. Ah, the analysts play such games.

Rigel (RIGL) is an intriguing biotech stock. It has the potential for a blockbuster drug in RA and the biotech sector is compelling with the big pharma companies on the prowl. PFE would've been wiser to buy up somebody like Rigel (RIGL) or some other favorites like Onyxx Pharma (ONXX) or Savient (SVNT). If you want to develop a pipeline, then why not buy all 3 and get access to several potential blockbusters. Regardless, these companies are solid without them. Not being a biotech expert, check out this story on Rigel from Hammer Stock . Rigel’s lead drug, R788, is currently being evaluated in two comparative trials in patients with rheumatoid arthritis (RA), a $14 billion indication. During most of 2008, R788 was considered to be one the most promising drugs in the biotech industry, but an update at last year’s ACR meeting raised doubts regarding the safety profile of R788, as reviewed in my recent article on Rigel. According to the company, the safety data from the ACR meeting d...